Naju City Increases Support for Small Business Development Funds from 400 Million to 500 Million Won

[Asia Economy Honam Reporting Headquarters Reporter Kim Yukbong] Naju City, Jeollanam-do (Mayor Kang In-gyu) announced on the 23rd that it will increase support for small and medium-sized enterprise (SME) development funds from the existing 400 million won to 500 million won to stabilize the management of local SMEs struggling with a sharp decline in sales due to the prolonged COVID-19 pandemic.

The city plans to extend the loan maturity by one year for companies receiving the funds and support the interest (2.0% per annum) accordingly.

The SME development fund is a working capital fund provided to resolve temporary financial difficulties of SMEs and alleviate the burden of financial costs.

According to Articles 7 and 19 of the "Ordinance on the Establishment and Operation of the SME Development Fund," the city compensates the interest difference at an annual rate of 2% for SMEs that have received loans under a two-year grace period lump-sum repayment condition through agreements with financial institutions after verifying eligibility.

The target for applying for SME development funds and maturity extension are manufacturing companies registered as SMEs with factory registration operating within the jurisdiction as per business registration, whose sales have decreased by more than 10% compared to the same period last year due to the impact of COVID-19 as of the application date.

Applications can be made by confirming loan eligibility through affiliated financial institutions and submitting the application form and required documents in person to the Job and Economy Division (Enterprise Development Team) at City Hall by the 30th of next month.

The affiliated financial institutions are Gwangju Bank, NongHyup Bank, Industrial Bank of Korea, Woori Bank, Hana Bank, Livestock Cooperative Bank, Shinhan Bank, and Kookmin Bank.

For maturity extension applications, the existing development fund recommendation decision notice and proof documents showing a sales decrease of more than 10% compared to the same period last year must be attached.

Companies regulated as delinquent clients by financial institutions, those receiving various funds operated by Jeollanam-do, companies that are temporarily closed or out of business, tax delinquents, and those in industries other than manufacturing are excluded from support.

Mayor Kang In-gyu said, “We hope that the increase in the SME development fund limit and the maturity extension measures will help stabilize the management of SMEs facing difficulties due to the prolonged COVID-19 pandemic,” adding, “We will do our best in economic quarantine to revive the frozen local economy through multifaceted support policies while protecting the health and safety of citizens from the COVID-19 crisis.”

This content was produced with the assistance of AI translation services.